Most of us purchase a car insurance because it is a mandatory legal requirement but very few understand it. Because of this lack of awareness; you often end up paying a hefty amount as your car insurance premiums. But like all other insurance plans; there are no ‘one-size-fits-all’ car insurance plans. What is right for you need not be apt for the next car owner. Knowing these simple secrets and playing them right would not only get you the best car insurance deal but would also keep your premium at the lowest possible rate. Check out these vital tips.
Understand your needs
Like any other financial instruments; car insurance also requires plenty of thought and consideration from your side. Foremost is understanding your requirements. Often car dealers give you plenty of benefits which are of no use to you but they take your premium amount higher. You must take into consideration the model and make of your car, its age, your driving habits including your driving history, your geographical location; expected mileage on a daily or weekly basis, etc. and then decide on the kind of insurance plan that would be best for you.
Shop around
You should never settle for the first car insurance offer that comes to you or jump to the cheapest car insurance deeming it as the best. It is best to understand the policies offered by various companies and understand what on offer very clearly. The smartest way to narrow down your choices is to visit various comparison sites and know the pros and cons of each plan. Match them with your needs and then choose the best fit.
It must also be noted that not all car insurance policy offerors might be on the comparison site like the local insurance providers. If required, you must talk to their representatives and then arrive at a decision.
Keep an eye on discounts
Most insurance companies have some well-kept secrets that is not advertised. For instance, any military official or a government employee and their close relatives are liable to get some affinity discounts on their premiums. Likewise, if you have taken up numerous driving courses or are a senior; you would be eligible to get discounts. Thus, you must research and exhaust all avenues for a possible discount.
Increase your eligibility for a lower premium
There are many factors attributing to your premium amount are beyond your control like your age, model and make of car, etc. However, there are several factors impacting the car premiums that you can constantly improve upon and lower your premium amount. Few of them are:
- Opt for bundle insurances like adding home insurance with your car insurance. It reduces the premium amount significantly.
- If your family has multiple cars; insure them under one policy. Group policy always comes cheaper.
- Always be a careful driver and strive for a clean driving history.
- Try to pay your annual or premium for six months at one go. This can cut your premium amount appreciably.
- Agree for online documentation. Plenty of service tax and commissions get nullified because of it.
- Always pay your bills on time so that your credit score is always healthy. Poor credit score can cost you with a higher car insurance premium.
- Try to increase the safety features of your car by installing modern gadgets like the GPS tracker, anti-theft system, etc. These increase the safety of your car and thus lower your premiums.
Adjust your policy to lower the premiums
You can make various adjustments in your chosen car policy to drive its premium down. Few of them are:
- The easiest way is to increase your deductible. However, this must be well planned as higher deductible means that you would need to pay a sizeable chunk from your own pocket in case of an accident. Thus, remember to maintain balance while raising deductibles.
- Check out if you are getting any cover from your other policies. For example, many banks offer a car breakdown cover on opening an account with them. You need to trim down all add-ons that are not required for you.
- You must always safeguard your No Claim Bonus and carry it forward when switching your insurance provider. You must also make full use of it at the time of renewal.
Add a second experienced driver
Adding a second, experienced and low-risk driver takes your premium down. Try not to go for young and high-risk drivers who can raise your premium amount. Do not try to put every family member’s name as this might hike the premium amount.
Consult an insurance agent
You must always consult with the insurance representative of various brands and understand its pros and cons. Speaking to a live human being will clarify your doubts and help you compare better to arrive at a better-educated decision. You would even be in a position to ask for further discounts.
Wrapping –up
By following the above tips; you should be able to evaluate various car insurance policies more effectively and crack the best deal for yourself.
